Govt hikes Petroleum Development Levy by Rs 5 per litre

ISLAMABAD: The federal government has enhanced Petroleum Development Levy (PDL) by five rupees per litre on petroleum products to fulfil a condition of IMF for the bailout package, ARY News reported on Saturday.

The PDL has reached to Rs 55 per litre with this hike, sources at the Ministry of Finance said.

The hike will not be enforced on the High Speed Diesel (HSD) and same 50 rupees per litre will be received on the HSD, sources at the ministry said.

The government, in a last-ditch effort to clinch a stalled IMF bailout, introduced a number of changes to its budget for the fiscal year 2023-24 including amendments to the petroleum ordinance.

The government has also hiked freight margin on petrol, which has been enhanced by 2.51 rupee per litre, sources said.

Freight margin on petrol has been enhanced to Rs. 6.20 per litre, sources said. The oil companies have six rupees and petrol dealers have seven rupees margin per litre, according to sources.

Sources said that the basic price of petrol has been Rs. 187.80. Freight margin on diesel has been Rs. 2.31 per litre. The oil companies freight margin on diesel has been increased by 27 paisa per litre.

“Freight margin on diesel has been minus 4.66 rupee per litre,” sources said. The oil companies’ margin on diesel has been increased from six rupees per litre to Rs. 6.27 per litre, according to sources.
Sources said that the basic price of diesel has been Rs. 201.89 per litre.

It is pertinent to mention here that the National Assembly last Sunday passed the Finance Bill 2023-2024, giving the go-ahead to the budgetary proposals for the upcoming financial year.

Steep increases in energy prices have raised concerns among consumers and industry stakeholders, who fear the adverse consequences on businesses and the overall cost of living.